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Tanami Gold has completed 13,900m of reverse circulation drilling at the Jims gold deposit in the Northern Territory, with a new diamond drilling program underway as its Central Tanami joint venture advances underground development at Groundrush.
Its September quarterly report confirmed 95 reverse circulation (RC) holes were completed at Jims, targeting improved confidence in the existing mineral resource and supporting future mine planning.
A diamond drill rig arrived on site in mid-September to commence a further 4866m program, with 639.1m completed across three holes before quarter-end.
The latest campaign will also provide material for metallurgical testwork as the joint venture assesses potential processing configurations for the broader Central Tanami project.
Jims, located approximately 23km southwest of the Central Tanami processing facility, hosts a mineral resource of 2.6 million tonnes grading 2.7 grams per tonne (g/t) gold for 220,000 ounces.
The deposit previously produced approximately 125,000 ounces of gold between 1998 and 2001 and is being evaluated as a potential open-pit ore source alongside the proposed Groundrush underground operation.
Meanwhile, the Central Tanami Project Joint Venture (CTPJV), owned equally by Tanami Gold and MGX Resources, continued preparations for underground development at Groundrush.
Mining contractor Macmahon commenced mobilising personnel, equipment and supporting infrastructure during September, including the arrival of underground mining machinery.
The joint venture also completed the initial bench strip blast to provide access to the Groundrush Central Decline portal, with the first portal blast scheduled to follow.
It was previously reported that Macmahon secured a $38 million contract in August to construct approximately 3500m of exploration decline over an estimated 14-month period.
The development will establish underground drilling platforms, allowing the joint venture to test down-plunge extensions of the Groundrush deposit to approximately 650m vertical depth.
The work forms part of a broader strategy to advance Central Tanami towards a potential mining development decision.
More recently, MGX outlined its transition towards gold development, identifying the joint venture as a major focus following its planned exit from the Koolan Island iron ore operation.
Central Tanami hosts a mineral resource of approximately 2.8 million ounces of gold, including around 1.2 million ounces at Groundrush.
Infrastructure improvements also continued during the quarter, with accommodation capacity expanded to 108 operational rooms and upgrades progressing across power, communications and site facilities.
Tanami finished September with $63.3 million in cash, excluding funds held by the joint venture, which reported $13.6 million in available cash.
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